Shares of Info Edge (India) Ltd nosedived as much as 10% on Monday after the Naukri parent wrote off its ₹276 crore investment in proptech startup 4B Networks.

The stock slumped 10% to ₹3,367 apiece on the National Stock Exchange (NSE) as the company reported a net loss of ₹116.5 crore for the third quarter. In the corresponding quarter last year, the company posted a net profit of ₹4,601.8 crore.

Info Edge shares are trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The large-cap stock has plunged around 24% over the past year. The stock has fallen 11.72% on a year-to-date basis.

Owing to concerns around the uncertainty of the funding environment for 4B Network, an impairment of ₹276 crore has been charged as an exceptional item, the company said in a regulatory filing last week.

However, the company's revenue from operations stood at ₹589.5 crore during the period under review, up 39.9% against ₹421.4 crore in the corresponding period of the preceding fiscal.

The company's EBITDA margin expanded to 32% in the December quarter from 27.7% a year ago.

"While we are seeing a slowdown in IT hiring, the non-IT hiring market continues to be strong," said Hitesh Oberoi, managing director and chief executive officer, Info Edge.

Info Edge owns property platform 99acres, job search portal Naukri and online matrimonial site Jeevansaathi.

JM Financial brokerage has a 'buy' rating for the stock with a target price of ₹4,650 per share. "We are mindful of the management’s hazy near-term commentary. So, while we assume a slowdown in recruitment billings over the next 1-2 quarters, we also expect a quick rebound supported by India's stable GDP growth and increase in offshored jobs demand," the brokerage said in a report.

YES Securities, too, has given a 'buy' call for Info Edge, with a price target of ₹5,215. "The company is also expected to continue to make tech-related investments to drive business growth and maintain its leadership position across segments. Info Edge is also best placed to benefit from growing digitalization of Indian economy," YES Securities said in its report.

Info Edge shares

Info Edge stock tanks 10% on Q3 loss